CEO Lee attended the Sixth Annual Meeting hosted by CAWS in Beijing in June, 2011 and delivered a speech on cooperation and win-win among logistics enterprises for EC. The speech dealt with the brief history of logistics enterprises of the first generation, the system of logistics service for EC and cooperation & win-win: core competitiveness of logistic enterprises for EC. Later, he gave a brief introduction to our company (www.fineex.com). Cooperation and win-win is our company’s core philosophy of service. We are always willing to be the strategic partner of enterprises of EC and logistics and support the development of EC.
2011年7月18日星期一
News 2.4 CEO Lee: We Need to Know What They Do and What We Can Do
(At 10 a.m. On June 22th 2011 in Shanghai) CEO Lee gathered employees from sales department, marketing department, ministry of law, distribution management department as well as several supervisors from operation centers in Beijing and Guangzhou at meeting room on the first floor and gave a lecture on the entire EC market, our operation system of logistics, participators and our partners in EC. This lecture is systematic and professional, organized in structure and intact in content, which analyzed what participators do and what we can do so that every one present in this lecture know how to do their job better. In the end, CEO Lee clarified the goal of our company and the plan of how our company would develop in the following years.
News 2.3 Our Company’s First Wave of Training for Project Manager Brought to a Successful Close
Our company’s first wave of training for Project manager officially started in Shanghai at 8:30 in June, 20th, 2011. Chaired by CEO Yongming Xiao, the training last 1.5 hours every day (5 days in total). The 15 participators are Guannan from project department, Daijing, Chengshuo, Tangyan, Wangjing, Yangxuan from customer service department, Zhangting from account checking department, He Qiulan& Zhu Xiangshun from warehousing department, Zhang Xiaoli from distribution department, Wangjin & Liude from operation center in Beijing, Luting & Helu from marketing department as well as Zhu Xuhao from operation center in Guangzhou. This training included five subjects like the project manager’s orientation, our service content, our company’s operation procedures, procedures of project management as well as how to communicate with customers and CEO Xiao dealt with each subject in detail each day.
The training ended on June 24th when a brief graduation ceremony was held, in which CEO Lee (Larry) summarized our company’s development strategies and orientation, the market circumstances and status of our company, a general idea of peer companies as well as the top ranked companies. After the training, each department needed to take advantage of what the project managers got from the training to improve each department’s operation manual by specifying different workflows for different clients so as to achieve our company’s development goal step by step.
News 2.2Warehouse Aggrandization has Started for Our Warehouse has been fully occupied
Our company’s warehouse in Baoshan District in Shanghai was put in use in August, 2010. With the development of our company and increase of our company’s business of logistics service for EC, the warehouse was almost fully occupied in March, 2011. For the purpose of offering quality service under the principle of operation at different sites to serve the clients nearby. Our company decided to rent more warehouse in Shanghai to meet our clients’ needs. In the past two months, our company has been looking for suitable warehouse and finally decided to rent the warehouse with the area of as much as 20,000 square meters at Jinshao Rd in Baoshan industrial garden.
News 2.1 Kaishi Changjiang Investment Management Co.Ltd Invested Tens of Millions of RMB in Shanghai Heyi Logistics Co.Ltd
(China Venture) Shanghai Heyi Logistics Co.Ltd.(www.fineex.com, Heyi Logistics for short), a logistics service provider for EC, has completed the first round of financing with a total of up to tens of millions of dollars in early June,2011, and the financial backer is Shanghai Changjiang Guohong fund center of equity(Changjian Guohong for short) affiliated to Kaishi Changjiang investment management corporation.
After this round of financing, Heyi logistics will continually strengthen its nation-wide warehousing, logistics operation and service system, providing service of logistics management to brand traders in EC.
The founder of Heyi Logistics stated that with recent development of EC in China, the biggest challenge EC faces is logistics. After more and more traditional enterprises enter EC, the challenge facing logistics and logistics management becomes bigger and bigger, Heyi Logistics is ready to help traditional enterprises with logistics when stepping into EC.
Heyi Logistics, set up in 2006, has been one of the earliest providers of service integrating warehousing and distribution to EC enterprises. The headquarter is in Shanghai, running logistics operation centers in Beijing, Shanghai, Guangzhou and Chengdu covering North China, East China, South China, Southeast China. The total area of warehouse reaches tens of thousands of square meters. They provide integrated services of logistics management to clients like Heinz, Yili Milk, Brand’s, and Jockey. Last year, Heyi Logistics attain growth of 500%.
Changjiang Guohong is the fourth branch of fund managed by Kaishi Changjiang investment management Co.Ltd, which was set up in 2010 with a total sum of 5billion RMB.
2011年6月28日星期二
Case Analysis: Incident from Misconduct in Handover Procedures
A General introduction
Operation center in GZ(Guangzhou)sent a local express mail via COD worth of 9,500 RMB in March 16th, 2011. The consignee received the package on March,17th ,which was sent by our company but the shipment waybill is of Yibang Express and Zhai Jisong Express’s bill number does not exist. All of a sudden, we realized that the goods may be stealed, then we contacted the courier from Zhai Jisong Express to inquire whether he received the goods in the express mail. We could not provide the base sheet or any proof to prove the courier took the goods. (Warehouse in GZ is located in the yard of China Post’s logistics base in Fangcun village. Ever since Feburary,2011,China Post has forbidden any courier to go in and out of the warehousing yard, the handover procedure must be finished outside the warehousing yard). Because of the weather that day, the courier took the goods and returned the base sheet the second day, no handover procedure was conducted at that time.
Solutions:
Firstly, we got the Yibang Express’s base sheet from the consignee and contacted the courier concerned in Yibang Express; Then we got the video hung over the China Post’s yard. After we showed those proofs, the courier had to admit that he had received the goods and was willing to compensate for all the payment for goods. Zhai Jisong Express compensated the promised payment.
Lessons：
We have learned a lesson from this incident: the number of stock in and out must be kept accurate and the handover procedure must be conducted without any errors. All people in Guangzhou Operation Center reflected on this incident and found out some problems and loopholes during operation. Also we need to operate in strict accordance with our company’s operation procedures. Besides, the responsibility needs to be placed on each corresponding employee.
Interview of CEO Larry Lee and Vice CEO Yongming Xiao
Before CEO Larry Lee and Vice CEO Yongming Xiao set up the website http://www.fineex.com/, they worked together for 10 years as logistics software developers. When they were aware that traditional logistics service could not meet the huge demand from fast-paced ecommerce market, they set up their own website in March, 2006. Originally their company served as a platform of online communication and transaction. As business develops gradually, their company is transformed to the entity one and their purpose of starting the company is changing from simply making money to shouldering the social responsibility as entrepreneurs.
Vision in Mind Team as Basis
Reporter: As you see it, what are the problems with logistics industry in China?
Larry Lee: So far, the biggest problems with logistics industry in china can be summarized as disorder, disjection and dissatisfied service. Most of the logistics companies are confronted with problems that logistics systems are inefficiently used, the business process is not standard and its operation is inefficient. That’s why we started our company.
Reporter: Many professionals remark that logistics is the bottleneck of Ecommerce’s development, what do you think of it?
Larry Lee: In terms of early ecommerce, the bottlenecks were payment, credit and logistics. Up to now, Problems with payment safety and credit have been gradually resolved. The biggest problem now is indeed logistics, logistics safety in particular. The bottleneck in China’s ecommerce is how to deliver the goods to consumers safe and sound after the consumers place orders. Our solutions are: Order fulfillment can be monitored via stock management; Delivery speed can be accelerated by tracing and monitoring; whether the goods is fake or genuine, good or bad, the problem can be investigated during stocking(If the goods is fake or smuggled, stocking is forbidden)
Reporter: You are very confident, as we see, so where does your confidence in doing great in this business originate?
Larry Lee: My confidence genuinely originates from our team. We are very confident that we can do great in this business. Currently, our clients and cooperative partners, including Taobao, credit our service. Their credits are not based on how I credit them but based on how well our team does. Our people, especially those who work at basic level are doing great.
Reporter: As oil price is soaring and employees’ salary is increasing, will such factors influence the development of our company?
Larry Lee: In the short term, the increase of such costs will, to some extent, influence our profits. However, in the long term, the market is improving, costs will be absorbed only if our team is united to enhance the operation efficiency and improve our service.
Reporter: Could you please explain our company’s philosophy “Extraordinary logistics, Extra attentive service” to us?
Larry Lee: “Extra ordinary logistics, extra attentive service” means an innovation to ordinary (traditional) logistics. They have fundamental differences, seen from the second half part of this philosophy, that extra attentive service means active service by our company in contrast to inactive service by traditional logistics companies.
Reporter: Then I’d like to raise a question that our employees are badly concerned about. What measures will our company take to keep our employees and our clients?
Larry Lee: To keep our employees, I believe, is to respect them as well as to offer enough space and good platform for them to develop and enhance themselves. We need to avoid complex relationships among employees like other companies and keep everything simple. Internal newspaper we are committed to publishing is to ask our employees to share their experience, which is in itself a confirmation to our employees. Our clients can be kept if our employees are kept. Although we are not the best company, we improve fastest and offer fast response to any question and need. We will improve ourselves if any question occurs and we will try our best to fulfill our clients’ needs.
Reporter: what advice would you give to the fresh employees?
Larry Lee: Firstly, they need to incorporate themselves to our corporate culture as soon as possible. In addition, we take seriously each employee. Secondly, they need to take an active attitude. Thirdly, every employee needs to try their best to have a good command of our system.
Reporter: what do you think are the problems with logistics in China?
Yongming Xiao: The biggest problem with logistics in China lies in that the importance of logistics is somewhat ignored and little respect is shown to the couriers. For example, we used to be software developers, our clients show respect to us, whereas we are now logistics service providers, some of our clients take us as couriers and show little respect to couriers and those working in the warehouse. Most of the people haven’t realized that to provide nice delivery is to enhance clients’ shopping experience. Up to now, this situation begins to improve.
Reporter: you must have encountered many delicate problems during our company’s operation. So what is the biggest problem you have encountered?
Yongming Xiao: The biggest problem is always with employees in the different phases of our company’s development. We need our employees when we are at trouble. We need our employees to improve themselves and shoulder responsibility when our company develops fast. Now we set up operation department with Daijing and Yuhui on the important position, although they are not only responsible and experienced but also down-to-earth. Those who stay with us is our treasure.
Reporter: As a third-party service provider, Do our company have any specific standard for our clients?
Yongming Xiao: we are just a service provider, so it is not suitable to set standard for our clients. It is crucial to tailor ourselves to meet different clients’ needs. we need to standardize every detail in our working procedures and meet different clients’ needs by combining those details.
Reporter: Since you have been engaged in software developing for so many years, our company provides service of warehousing and distribution and has technically got improved, can I put it this way: technology is our winning magic?
Yongming Xiao: I am afraid I can’t agree with you. Any company could not only rely on technology, for it is just a tool and it is employees that undertake the specific job. As a grassroot third-party service provider, we are supposed to concentrate on our service to do best in every detail. Take packaging for example, we have rules about how to package step by step and how to paste every sheet. They are our integrated advantages and can serve as our winning magic.
Reporter: As is known to all, warehousing management is very complex and delicate, and if the number of orders is beyond our capability, how does our company face it?
Yongming Xiao: Obviously our online system exhibits its own advantages. You see, traditional logistics companies tended to deal with orders one by one. In contrast, we will take advantage of our online system to screen out orders of the same type, print the sheet, pick and package goods to promote the working efficiency and lower down the error rate.
Reporter: how does our company handle the situation that some of clients’ goods are found missing or spoiled if our clients store their goods in our warehouse and distribute them?
Yongming Xiao: Daily we check those goods that need to distribute on the very day and we know whether the number of stocks is abnormal. Also monthly we check all our goods to ensure that goods are not missing. As for the spoiled goods, we compensate our clients first if they cover their goods.
The Next Five Years: New Beginning, New Challenge!
Since our company has set up for 5 years, CEO Larry Lee and Vice CEO Yongming Xiao both regard next five years as a new beginning and will meet other challenges. Yongming Xiao hopes that our every step and procedure is standardized and details are paid full attention to. The next five-year objective for Larry is to: enlarge our company’s team and cultivate employees at basic level into intermediate or even advanced ones at managerial level; try our best to be leading logistics service provider for ecommerce and help Ecommerce entrepreneurs smoothly start their business; set up 10 operation center all China.
Customer First, Employee Foremost
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